ENVIRONMENTAL, social and governance (ESG) funds in South-east Asia recorded net outflows in the first quarter of 2024, even as non-ESG funds pulled in more money.
Investment strategists told The Business Times that investors across the globe have generally been allocating their capital into money market and fixed income funds, whether they come with the sustainability label or not.
South-east Asia’s ESG funds, which are mostly equity funds, have therefore been missing out. Nonetheless, some fund managers expect to see a more supportive environment for fund flows globally as the interest rate environment stabilises.
